Bitcoin Cash-pegged token set to go live on Binance DEX

In an interesting development of events, Binance CEO Changpeng Zhao has suggested the listing of BCH-pegged token on the company’s decentralized exchange platform referred to as Binance DEX. Binance’s Token Issuance & Listings page said on October 17 that the platform was preparing “to list BCH-1FD, a pegged token that tracks the value of the native asset of the Bitcoin Cash.”

The page explains further saying:

“BCH-1FD aims to provide a token pegged to BCH value for trading on Binance DEX. In 2017, the Bitcoin community split into two: BTC and Bitcoin Cash(BCH). BCH is a peer-to-peer electronic cash system.”

Binance.com will be providing conversion services between BCH and BCH-1FD via the deposit/ withdrawal service. This is because “there isn’t much development work in this token or any potential of conflict of interest.”

According to the proposal users of BCH-1FD will be able to covert the token to BCH on Binance.com. The token currently has a total circulating supply of 5,000 BCH. However, this supply will be increased over time.

“BEP2 BCH is mintable, and the total supply will increase as market demands. All the issued BEP2 BCH will be backed 1:1 by native BCH sitting in a publicly disclosed reserve address that can be monitored by anyone at all times.”